Real Estate Investing
Net Rental Yield
Definition
What is Net Rental Yield?
Annual rental incomePayments received from tenants for the use of property. after operating expenses divided by the propertyLand and buildings held for use, rent, development, or capital appreciation.'s cost or value.
Example in practice
How This Looks in Practice
After ₦500,000 expenses, ₦1.5 million net incomeProfit remaining after operating costs, financing costs, taxes, and other recognised items. on ₦40 million gives 3.75%.
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Related Terms
Real Estate Investing
Real Estate
Land and buildings held for use, rental income, development, or appreciation.
Real Estate InvestingResidential Property
Property designed mainly for people to live in.
Real Estate InvestingCommercial Property
Property used for business purposes, such as offices, shops, or warehouses.
REIT MetricsFunds from Operations
A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.